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NEA Design 3.Indd FISCAL YEAR 2017/18 Contents COMPLIMENTARY COPY Message from the Minister 2 Message from the Chairperson 4 Board of Directors 6 Corporate structure of NEA 7 Deputy Managing Directors 8 Managing Director’s Report 9 Generation Directorate 19 Transmission Directorate 44 Distribution and Consumer Services Directorate 61 Planning, Monitoring and Information Technology Directorate 86 Engineering Services Directorate 93 Project Management Directorate 119 NEA’s Subsidiary & Associate Companies 128 Central Activities 149 Administration Directorate 155 Finance Directorate 158 Statistics & Schematics 170 Tariff Rates 176 Appendix 180-193 Maps 194-196 NEPAL ELECTRICITY AUTHORITY Head Offi ce: Durbar Marg, Kathmandu, Nepal Phone: +977-1-4153007/4153013, Fax: +977-1-4153009 Email: [email protected] Website: www.nea.org.np Nepal Electricity Authority 1 A YEAR IN REVIEW FISCAL YEAR 2017/18 2 Nepal Electricity Authority FISCAL YEAR 2017/18 Nepal Electricity Authority 3 A YEAR IN REVIEW FISCAL YEAR 2017/18 4 Nepal Electricity Authority FISCAL YEAR 2017/18 Nepal Electricity Authority 5 A YEAR IN REVIEW FISCAL YEAR 2017/18 Board of Directors Mr. Anup Kumar Upadhyay Secretary Ministry of Energy, Chairman Shishir Kumar Dhungana Mr. Chandra Tandon Secretary Member Ministry of Finance, Revenue Mr. Umesh Prasad Thani Mr. Bhakta Bahadur Pun Member Member Mr. Chet Raj Joshi Mr. Kul Man Ghising Member Managing Director, NEA Member Secretary 6 Nepal Electricity Authority FISCAL YEAR 2017/18 Organization Structure NEPAL ELECTRICITYNEPAL AUTHORITY Nepal Electricity Authority 7 A YEAR IN REVIEW FISCAL YEAR 2017/18 Deputy Managing Directors Mr. Sunil Kumar Dhungel Mr. Rajeev Sharma Deputy Managing Director Deputy Managing Director Generation Directorate Engineering Services Directorate Mr. Jagadishwar Man Singh Mr. Mohan Ratna Shakya Mr. Hitendra Dev Shakya Deputy Managing Director Deputy Managing Director Deputy Managing Director Planning, Monitoring & IT Directorate Budhigandaki Hydroelectric Project NEA Engineering Company Mr. Anil Rajbhandari Mr. Lekha Nath Koirala Ms. Shanti Laxmi Shakya Deputy Managing Director Deputy Managing Director Deputy Managing Director NEA Subsidiary Company Finance Directorate Administration Directorate Monitoring Directorate Mr. Hara Raj Neupane Mr. Braj Bhusan Chaudhary Mr. Manoj Silwal Deputy Managing Director Off. Deputy Managing Director Off. Deputy Managing Director Distribution and Consumer Transmission Directorate Project Management Directorate Services Directorate 8 Nepal Electricity Authority MANAGING DIRECTOR’S REPORT FISCAL YEAR 2017/18 MANAGING DIRECTOR’S REPORT t is with great honor, privilege and a sense effi cient power in the days ahead. I would like of satisfaction that I bring to you the Annual to take this opportunity to emphasize that the Report of Nepal Electricity Authority (NEA) in intermittent power cuts is purely due to technical successfully completing thirty three years glitches that the system has to face from time to of service in generating, transmitting and time. It will take some time and investment to get Idistributing continuous power to its consumers. rid of such supply disturbances. The past year can be considered successful as The last year also saw injuries and deaths of the NEA achieved its primary goal of eradicating load employees of NEA while pursuing their duties and shedding from the entire country from 14th May, local individuals due to electrical related accidents. 2018 with the end to power cuts during peak I on behalf of the entire organization would like hours in the industrial sector too. to pay homage to the departed souls and assure rd Celebrating the 33 anniversary of NEA is an greater vigilance to minimize accidents. opportune moment to share our achievements in NEA is taking steps for automation of its systems, the past year as well as to assure our customers in keeping with the changing times. This has on meeting our commitments with better performances in the coming year. become necessary to meet the ever increasing demand. Some of the major plans that are in The aim of making NEA a profi t making the process are Implementation of Enterprise organization again was achieved in the fi scal Resource Planning (ERP) Management, year 2016/17 with a net profi t of NRs 1,512.22 Geographical Mapping System (GIS Mapping), million. This trend has continued into the year Preparation of Distribution System Master under review (2017/18) with a net profi t of NRs Plan, Smart Meter/Grid Tied Meter (Net Meter), 1,010.20 million (provisional). The continuous Substation Automation System etc. supply of energy and the strict measures taken to reduce energy theft have made a big impact in The performances and achievements of NEA in this endeavor. the past year, 2017/18, are briefed below: The past year has also seen the commissioning of Operational Performance the long awaited Chameliya Hydroelectric Project The number of consumers has been increasing in the far west. A couple of Transmission Line gradually. The total number of consumers projects and a few Substation projects were also increased from 3.26 million to 3.55 million completed in the last FY 2017/18. including community and bulk buyers during The level of public support that has been coming the year. As has been in the past, the domestic our way after the end to the decade long load consumer category with 3.33 million consumers shedding has been overwhelming. We look remained the largest category with 93.83% share forward for continued public support and commit of the entire electricity consumers. Domestic to ensure the supply of continued, reliable and and Industrial consumer category contributed Nepal Electricity Authority 9 A YEAR IN REVIEW FISCAL YEAR 2017/18 43.50 % and 37.53 % to the gross electricity total eradication of load shedding during the year. sales revenue respectively. Rest of the consumer At the same time it has also helped a great deal category accounted for the remaining 18.72% of in saving valuable foreign currency reserve of the the gross sales revenue. The total population with country that was being used to import additional access to grid electricity has reached about 70% petrol/ diesel for the generators, batteries, from 65 % in the last fi scal year. invertors and solar panels used to counter the darkness during load shedding hours. NEA’s hydropower plants including small power stations generated a total of 2,308.37 GWh of NEA’s overall operating expenses including power electricity, against the generation of 2,305.17 purchase increased from NRs 45,572.09 million GWh in the last year. The generation within the in the FY 2016/17 to NRs 52,621.37 million in country has not been suffi cient in eradicating load FY 2017/18, an increase of 16.98 %. The main shedding; additional power had to be imported reasons behind this increase in the operational from India. The total energy imported from India cost are the increase in the power purchase cost was 2,581.80 GWh as compared to 2,175.04 and staff salary due to additional recruitment. GWh in the last year, an increase by 18.70%. The In the FY 2017/18 NEA had a total revenue of total power purchased from Independent Power NRs 60,480.67 million as against the operational Producers (IPPs) within Nepal was 2,167.76 GWh, expenses of NRs 52,621.37 million resulting in an increase by 21.97% from the last year’s fi gure an operational surplus of NRs 7,859.3 million as of 1,777.24 GWh. The total energy available in against NRs 6,717.77 in the FY 2016/17 NEA’s system increased by 12.79 % to 7,057.93 The cost for purchasing power has again been GWh over the previous year’s fi gure of 6,257.73 the largest component in the total operating GWh. Out of the total available energy, NEA’s own expenses in the year under review. NEA spent generation contributed 32.71% whereas those NRs 33,817.27 million in purchasing power from imported from India and local IPPs accounted for the various Independent Power Producers (IPPs) 36.58% and 30.71% respectively. and import from India. This is 55.91 % of the total A nationwide drive was launched to reduce system revenue generated. losses. This has shown positive results reducing Energy from purchased power amounted to 67.3 the system losses from 25.78 % to 22.9 % in FY % of the total available energy and NEA paid 2016/17 and to 20.45% in the year under review. 61.54 % of the net electricity sales revenue for The amount of loss that still persists is still not this purpose. The total cost of purchased power within acceptable limits and continued drive to increased by 19.36 % in the FY 2017/18 as minimize it is underway nationwide. compared to FY 2016/17 due to the increase in Financial Performance the volume of import and to some extent because of normal price escalation in power purchase. After many years of huge fi nancial losses, NEA managed to earn a net profi t of NRs 1,512.22 Other operating expenses for generation, royalty, million in the fi scal year 2016/17. The net profi t transmission, distribution and administration in in the last fi scal year 2017/18 is NRs 1,010.20 the last FY 2017/18 amounted to NRs 1,775.94 million (provisional). The total revenue generated million, NRs 1,351.55 million, NRs 1,998.93 from energy sales and other income in the year million, 7,828.68 million and NRs 1,717.41 million reached NRs 60,480.67 million as compared to respectively. NRs 51,703.11 million in the previous year. This Interest expense for the year 2017/18 has been is an increase of 16.98 % from the previous year.
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